Pakistan’s ongoing discussions with the International Monetary Fund (IMF) have resulted in an agreement to maintain the country’s annual tax collection target at Rs 9,415 billion.
This decision emerged from policy-level talks, indicating a vital stride in Pakistan's economic strategy.
The international lender has acknowledged the commitment of Pakistan’s tax authorities to uphold this annual tax target without the need for a mini-budget.
Notably, the discussions emphasized an assurance from the caretaker government that no new taxes would be imposed. Instead, efforts will be directed towards enhancing administrative measures to bolster tax revenue.
Sources within the Federal Board of Revenue (FBR) highlighted the pledge made to the IMF regarding plans to expand the tax net by fostering comprehensive documentation within the economy. This move aligns with the aim to meet the ambitious tax targets set by the IMF.
Furthermore, the FBR confirmed that a detailed plan outlining the strategy for achieving the Rs 9,415 billion tax collection target has been submitted to the IMF. The plan assures the international organization of Pakistan's commitment to meeting these goals while simultaneously aiming to eradicate tax evasion within the real estate sector.
On the other hand, Caretaker Finance Minister Dr. Shamshad Akhtar has assured the public that there will be no additional tax burdens, and the tax target will remain at Rs 9,415 billion.
She said that the federal government will adopt a policy of fiscal prudence in spending, and the finance ministry is committed to controlling the budget deficit by reducing expenses.
Dr. Shamshad Akhtar expressed optimism about the ongoing discussions with the IMF, stating that they are progressing positively.
“The IMF has demonstrated confidence in the actions of the caretaker government, particularly in supporting the program and development expenditure for the betterment of the country,” she added.
